Ecuador 2021. Strong Post Covid Demand Pushes Up the Motorcycles Industry

2079

Ecuador Motorcycles industry is back in a good shape. In the first half 2021 new registrations have been 97.955, up 23.5% vs the correspondent period in the 2020, while still down 3.8% vs the 2019. However, full year sales are projected again over the 200.000 units.

 

Motorcycles Market Trend 2021

The Ecuador motorcycles market is back in a good shape.

The market has been one of the best worldwide in the last decade and the covid19 just enhancing the demand for two wheelers, with sales boosted towards new records.

While the country is the World’s 62nd economy, when considering the two-wheeler industry, it is in 32nd place, due to the relatively low pro capita income, the relatively low availability of paved roads and – not forget – the Latin people love for motorcycles.

The market grew up in recent years with an impressive speed, sustained by strong demand and surging economy. The covid19 stopped the trend in the middle part of the 2020, but the crisis the renovated demand for individual mobility is pushing up the market again.

Indeed, in the first half 2021 new registrations have been 97.955, up 23.5% vs the correspondent period in the 2020, while still down 3.8% vs the 2019. However, full year sales are projected again over the 200.000 units.

Actually there are 195 different brands competing in the market. However, the leader is the Chinese Shineray increasing sales by 68%, followed by the local manufacturers Ranger (+23.8%) and Daytona (+26.7%).

Below, the Indian giant Bajaj Auto, growing 30.6% this year.

Ecuador Motorcycles

Ecuador Two-Wheeler Market Heritage

Between the 2012 and the 2019 the market grew up 23 times growing from few thousand units top a record of 173.815 sales, becoming the seventh largest market in the Latin America.

The industry development was enhanced by the import of low cost vehicles from China. The availability of a wide choice of models at affordable price was a key factor to push consumers to consider the motorcycles as a real and efficient alternative to the cars, even considering the pro capita income in the country is still low.

The industry growth pushed local investor to enhance the local production, with several manufacturers expanding their production, initially using several low cost Chinese component than then developing your local network of local supplier.

Indian manufacturers, importing from Colombia, found the environment fitting their product offer and fast taken market share. Japanese, have lost share, considering that Suzuki, market leader in 2012 with 22.3% of market share, actually holds only 6.6%, while selling over 10 times more.

Finally, premium brands landed from Europe to take their part of the pie